Former Reserve Bank of Australia (RBA) board member Bob Gregory said on Tuesday that the Australian policymakers are delighted with the robust economic recovery, which draws their attention to policy changes in the short term. However, it overshadows darkening clouds in the longer term, per Bloomberg.

Key quotes

“The tension between what’s best in the short run and what’s best in the long run hasn’t ever been as sharp as it is now.”

“We are going in directions which are going to make it hard down the track.”

“I’m firmly of the view that a lot of the positive things that came for Australia’s economic growth over the last two decades came out of China.”

“The cost of us losing wine, potentially students, is perhaps not the end of the world today, but it’s the growth you’ve got to look at.”

“I can guarantee the following: If inflation was to develop in the U.S., then it comes here, it doesn’t matter what we do.”

“You can be optimistic about the Australian economy in the short run because you can say all government action, virtually, is to make sure the next year is a really good one.”

“The bad or worrying things aren’t hurting at all in the next year. But when you look ahead, the tradeoff is going to become quite difficult.”